Digitalisation Has Potential To Add £3.3bn To Manufacturers’ Revenues In Yorkshire & Humber

Research from Siemens Financial Services (SFS) estimates the potential value digitalisation offers manufacturers in Yorkshire & Humber.

Entitled the Digitalisation Productivity Bonus: Manufacturing in Yorkshire & Humber the report estimates that manufacturers in this region stand to gain £ 3.3 billion from digital transformation and the resulting improvements in manufacturing productivity.

This equates to around 6% of total revenue for manufacturers in the region. These efficiencies, although not estimated here, can also be realised throughout the supply chain. As the UK faces a period of sustained significant economic crisis, this greater productivity and agility will help manufacturers in the region cope with the market disruptions.

Digital technology (also known as Industry 4.0) is enabling manufacturers to improve performance through increased manufacturing productivity, improved planning and forecasting, enhanced competitive capabilities and greater financial sustainability.

The manufacturing sector is an important part of Yorkshire & Humber’s economy, accounting for 15.6% of the region’s output, well above the UK average. There are more than 12,000 manufacturing businesses in the region, which provide countless jobs. In Q1 2020, Yorkshire & the Humber was 1 of only 2 regions to report positive highly positive output and order figures.


Although the exact building blocks of productivity differ between industries and regions, increasing that productivity - to either produce the same number of products for less or more products for the same - has a clear and calculable positive effect on costs and margins. This positive effect has been labelled the Digitalisation Productivity Bonus.

The paper draws on a statistical model, developed by SFS, which estimates the Digitalisation Productivity Bonus in the Yorkshire & Humber region to demonstrate the potential gain from Industry 4.0 for manufacturers in the region – even through the current economic difficulties. The average ‘Bonus’ percentage range was applied to the total annual revenue of the manufacturing sector in the Yorkshire & Humber (revenue data derived from official third party sources).

To overcome the obstacle of investing in Industry 4.0 technology, specialist financiers have developed a set of smart financing tools that enable the transition to new-generation digital technology in a way that is affordable, sustainable and is designed to alleviate the manufacturer’s cash flow and working capital pressures. Aligning payments to commercial outcomes is particularly important during an economic period where all expenditure has to deliver an exceptionally clear and tangible link to business benefits.

The paper explores these specialist financing methods, including machinery & technology financing, retrofit finance, software finance, outcomes finance, digital enterprise finance and working capital solutions.

“Companies in Yorkshire & Humber form a cornerstone of British manufacturing. For the region to maintain its position as an industry leader, it’s essential that businesses make the most of Industry 4.0 potential,” commented Neli Ivanova, Sales Manager, Industrial Equipment at Siemens Financial Services in the UK.

“While it can be difficult to quantify the specific gains of such an investment, it’s clear from our research that increased productivity can be understood in terms of financial savings.”